DE30: Commerzbank forecasts fail to satisfy investors

• DE30 remains in consolidation zone

• SAP raises revenue forecasts and announces share buybacks

• Commerzbank's raised forecasts do not satisfy investors

Wednesday's trading session on the European markets brings mixed sentiment among investors. The German DAX (DE30) is up slightly today, but is still within the consolidation structure defined around its recent local peaks. A review of inflation data from the euro area showed no change from the previous reading. The macro calendar for today's session is relatively poor, but investors will react to data readings from the US property market (01:30 pm BST). 

The mood in Europe during Wednesday's trading session is relatively mixed. Source: xStation 5

News: 

SAP (SAP.DE) plans to carry out a share buyback program worth up to €5 billion and raises its revenue forecast for 2025 to €37.5 billion (previously it was €35 billion). The share buyback program itself is expected to start in the second half of 2023. The situation around the company appears to be improving despite the prospect of a weakening global economy. The company is set to significantly strengthen its profitability, as evidenced by its maintained forecast of annual 20% FCF (free cash flow) growth between 2022 and 2025. 

SAP (SAP.DE) stock price, W1 interval. Source: xStation 5

The shares of Commerzbank (CBK.DE) are losing more than 6% during today's session following the publication of its quarterly results and raised forecasts for interest income for the year, which have been increased to levels already priced in by the market. This profit is expected to reach €7 billion, with the best case scenario reaching €7.3 billion. On the other hand, the Bloomberg consensus was for an underlying profit of €7.26 billion. In the short term, supportive for the company's share valuations could be the ECB's possible approval of a share buyback. 

Detailed quarterly results and outlook for Commerzbank (CBK.DE). Source: Bloomberg

Major percentage changes and news from individual companies in the DAX index. Source: Bloomberg

Changes in institutions' holdings in individual companies of the DAX index (data from the last session). Source: Bloomberg

DE30 chart

Futures based on the German DAX Index (DE30) are up moderately today, but are still in a consolidation structure around recent local peaks. Source: xStation 5